Fed’s Neel Kashkari Labels Cryptocurrency ‘Utterly Useless,’ Questions Stablecoins’ Practical Value
Minneapolis Federal Reserve Bank President Neel Kashkari delivered a blunt critique of cryptocurrencies, including Bitcoin (BTC) and stablecoins, describing them as “utterly useless” during his speech at the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota. His comments underscore ongoing skepticism among some policymakers regarding the economic utility of digital assets compared to emerging technologies such as artificial intelligence (AI).
Kashkari’s Take on Crypto and AI
Addressing the audience on February 19, 2026, Kashkari contrasted the long-term economic potential of AI technologies with the limited practical benefits he sees in cryptocurrencies. He emphasized that while crypto has been around for over a decade, it has failed to demonstrate meaningful real-world applications for consumers or the broader economy.
To illustrate his point, Kashkari posed two questions to the audience: who had used AI tools like ChatGPT or Gemini recently, and who had bought or sold something using Bitcoin. His rhetorical approach highlighted the wider adoption of AI relative to cryptocurrencies.
“Crypto has been around for more than a decade, and it’s utterly useless,” Kashkari said. In contrast, he praised AI for its tangible promise to fuel economic growth in the United States.
Doubts on Stablecoins and Payments Use Case
Kashkari extended his skepticism to stablecoins, digital assets pegged to traditional currencies like the U.S. dollar, which have been promoted as tools for efficient and lower-cost payments. He dismissed stablecoins as a “buzzword salad” and questioned their advantages over established payment platforms such as Venmo within the U.S. market.
“What can I do with a stablecoin that I can’t do with Venmo today?” he asked, signaling doubt that stablecoins offer superior convenience or functionality for everyday transactions.
When pressed on the argument that stablecoins enable cheaper, faster cross-border payments, Kashkari acknowledged their increasing adoption in emerging markets but noted persistent operational and technical challenges. He pointed out that recipients still must convert stablecoins into local currency to make practical purchases like groceries, a step that can incur costs and reduce convenience.
Contrasting Government Views
Kashkari’s dismissive stance on cryptocurrencies stands in contrast to recent policies and initiatives from the previous Trump administration, which viewed digital assets as strategic tools to reinforce the U.S. dollar’s global dominance. Former Treasury Secretary Scott Bessent advocated for regulated dollar-backed stablecoins to extend the greenback’s reach in international payments and strengthen U.S. financial influence.
Moreover, President Trump signed an executive order in March 2025 to establish a strategic bitcoin reserve, signaling an official endorsement of Bitcoin’s monetary and geopolitical utility.
The Broader Context
Kashkari’s remarks come at a time when cryptocurrencies continue to experience volatility and regulatory scrutiny. While innovators and some policymakers tout cryptocurrencies’ potential to reshape financial systems, established authorities remain cautious, emphasizing consumer protection, financial stability, and tangible benefits.
The Federal Reserve continues to explore digital currencies through initiatives like the potential development of a U.S. central bank digital currency (CBDC), reflecting interest in improving payment infrastructure but maintaining strict oversight.
As debates persist over crypto’s role in the financial ecosystem, Kashkari’s viewpoint adds to the chorus of voices urging a focus on proven, impactful technologies that demonstrably serve economic needs.
Bitcoin price as of February 19, 2026: $67,979.75
Related developments: The U.S. Securities and Exchange Commission recently adjusted capital treatment guidelines for broker-dealers holding stablecoins, potentially increasing institutional engagement with these digital assets.
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